While the following Case Files occurred, specific names and identifying details have been omitted to protect the privacy of the people and companies involved. David Wimer, davidwimer.com and David Wimer Associates, LLC does not provide specific business advice unless under a formal Letter of Engagement. To that end, the following Case Files are representative of the types of advisory work performed and experiences of David Wimer, davidwimer.com and David Wimer Advisors, LLC, which includes general outcomes.
MCDONALD’S FRANCHISE
Industry: Fast Food Restaurants
Size: Multi-unit franchise; multi-million revenue and asset value.
Value: Provided financial and risk management oversight during 18 months to avoid value impairment.
Actions: Financial oversight for co-owner during spouse/operator illness; guided Next Gen on his pursuit of operator track.
Interfaces: CPA, Estate and Business Attorney, Insurance Broker, Lender.
Results: Preserved operating assets and cash flow until operator returned to business.
HOME CARE FRANCHISE
Industry: Healthcare
Size: Multi-location, multi-million revenue, non-medical home care services.
Value: Exit strategy preparation for husband and wife. Husband diagnosed with terminal illness. Led transaction valuation, packaging, marketing and negotiations.
Actions: Guided husband and wife through the sale process, marketing and packaging, negotiations and deal closure.
Interfaces: Recommended deal attorney, worked with CPA and tax implications, and provided market value.
Results: Business sold to new owners and franchise operators at top percentile multiple. Multi-year earnings for owners negotiated in deal with buyers. Family member remained as management level employee.
FLOORING DISTRIBUTOR & CONTRACTOR
Industry: Multi-Generation Residential & Commercial Flooring
Size: Single location, multi-million revenue. Sub-contractor services, material sales and retail outlet.
Value: Guided through Bank transition. Secured new SBA financing. Re-structured company using innovative non-taxable, pension strategy for equity.
Actions: Provided decision support on financial forecasts. Developed cash flow forecast.
Interfaces: CPA, Business Attorney, Bank negotiations, Annuity Broker, 401(k) Pension Manager.
Results: Transformed and re-structured business. Owner exit plan executed with retirement value coming from commercial property sale during upswing in economy.
PRECISION MACHINING WITH COMMERCIAL REAL ESTATE
Industry: Manufacturing – Metals
Size: Single location, multi-million revenue.
Value: An estate owned a commercial property they wanted to exit. Decedent left a complex partner arrangement between non-family business owner using the property for manufacturing and his estate. Needed to sort through the verbal understandings to reach agreement between the parties.
Actions: Guided both parties through sale and transition of property and business to private investor group, leveraging asset value to secure new Bank financing for real estate purchase. Developed acquisition plan. Led bank sourcing and financing. Provided decision support on forward-looking revenue forecasts and cash flow.
Interfaces: CPA, Business Attorney, Estate Attorney, Real Estate Agent, Banker.
Results: Transformed and re-structured business for acquisition of both real estate and manufacturing business for private investors and estate exited real estate at market value.
BEVERAGE MANUFACTURING & DISTRIBUTION
Industry: Manufacturing – Packaging – Hot Fill Process
Size: Single location, multi-million revenue.
Value: Subsidiary of larger parent that was built for specialty beverage manufacturing before downturn in tea industry. Business secured contract packaging agreements with 2 Fortune 500 Beverage Manufacturers. Significant losses in prior years placed business at significant financial risk. Success of implementing new lines of business were critical tipping points.
Actions: Key Executive in Operations for the 4-year old business.
Interfaces: Owner, Turnaround Professionals, Bankers, Customer Representatives, Workforce.
Results: Transformed business production and efficiency for acquisition by Mid-West entity.
BEVERAGE MANUFACTURING & DISTRIBUTION
Industry: Manufacturing – Packaging – Cold Fill Process
Size: Single location, multi-million revenue. Multi-Generation.
Value: Large soda manufacturer with heavy concentration of customer base and private label business. Reduced contract packing costs impacted operating breakeven. Pulled efficiencies up, built quality in and drove costs out of operation.
Actions: Key Executive in Manufacturing Operations & then Finance for the 50-year old business.
Interfaces: Owner, CPA, Multi-Bank Participation, Customer Representatives, Workforce.
Results: Transformed business production and efficiency for acquisition by largest Customer.
FOOD PACKAGING & DISTRIBUTION SUBSIDIARY OF CONGLOMERATE
Industry: Distribution – Route Logistics – Packaging
Size: Single location, multi-million revenue.
Value: Three years after original entrepreneur co-owners retired, financial results were on severe downturn.
Actions: Lead Executive that moved Revenues up and Costs down to set up the turnaround. Reached profitability as predicted in year three for conglomerate to exit the business.
Interfaces: Corporate Board, Presidents Alliance.
Results: Transformed and re-structured business for acquisition of both real estate and manufacturing business.
BRANDED MOVING & STORAGE BUSINESS
Industry: Distribution – Logistics – Storage
Size: Single location, multi-million revenue.
Value: Provided decision support for owner during downturn of residential & commercial moving industry due to economy. New facility design/build became a drag on cash flow. Internal bookkeeping had intercompany income overstated.
Actions: Analyzed cash flow and value of business. Sourced potential acquirers. Found eventual competitor match with long-term employment contract for owner. Business was eventually liquidated. Commercial real estate rented and then sold.
Interfaces: Owner, CPA, Attorney, CFO, Management Team.
Results: Owner exited business with equity in real estate and long-term employment contract with top industry competitor.
HOTEL FRANCHISE & ASSET VALUE RECOVERY
Industry: Hospitality
Size: Single location of multi-hotel portfolio, multi-million revenue.
Value: Led negotiations for owners group faced with termination of prized hotel franchise for hotel management non-performance on quality scores. Developed a creative strategy for re-structuring hotel general partner and hiring new 3rd party hotel management group to satisfy Franchisor. Preserved entire asset value of portfolio.
Actions: Analyzed and worked within guidelines provided during exceptionally demanding and time-sensitive negotiations with Franchisor to re-license the hotel. Preserved cash flow and portfolio enterprise value. Sourced potential private-equity acquirers during process.
Interfaces: Owners, CPA, Attorney, Franchise Executives, Workforce & Management Company.
Results: Owners maintained franchise and preserved Distributions and Value of Assets.
HOTEL ASSET VALUE LOSS AVOIDANCE
Industry: Hospitality
Size: Single location of multi-hotel portfolio, multi-million revenue.
Value: Advised spouse during owner’s illness when she was presented with asset purchase agreement to sign for prized hotel.
Actions: Analyzed financials and discussed cash flow and value with long-term hotel management company. Discussed value with CPA and Attorney. Recommended independent appraisal of hotel using industry-recognized valuation experts. Managed expectations of buyer during discussions and eventually sale was terminated when hotel value was quantified at a couple million in value over purchase price.
Interfaces: Spouse of Owner, CPA, Estate Attorney, Valuation Group, Hotel Management Company.
Results: Owner maintained hotel asset that provides distributions.
PROPERTY DEVELOPMENT JOINT VENTURE
Industry: Premier Real Estate – Florida
Size: Multi-million Investment in Design / Build Custom Residential property.
Value: Advised Owner on her waterfront land investment in Florida that had lost 50% in value. Recommended joint venture with a builder during economic downturn to hedge falling land prices. Building timeline and carry interest bridged the worst part of 2nd Great Depression in lackluster sales and heavily depressed property prices. Early upswing in premiere waterfront real estate produced a buyer for the luxury residence.
Actions: Analyzed carry costs and builder risks. Land value used as security for building luxury residence and half interest in joint venture.
Interfaces: Owner, CPA, Estate Attorney, Florida Real Estate Attorney, Florida CPA, Builder.
Results: Owner exited an over-inflated land value with substantial cash plus tax benefits to breakeven on an investment that was headed for a seven-figure loss.
HEALTHCARE SERVICES & EMPLOYEE ASSISTANCE PROVIDER
Industry: Healthcare
Size: Multi-location, diversified, multi-million revenue, Healthcare Practice.
Value: Advised Partners of exit options due to profit margin compression of insurers. Partners seeking to merge business with an institution failed. Identified one area of the practice that had standalone financial value and sourced potential suitors. Successfully closed sale of EAP line of business to out-of-area buyer interested in securing client base.
Actions: Analyzed risks and options involved with the decision to merge or sell the practice. Provided decision support to majority Operating Partner on tail insurance, stay bonuses, wind down action steps. Lead negotiator for sale and lease terminations. Orchestrated HIPAA compliant records management solution for long-term storage/retrieval.
Interfaces: Operating Partner, CPA, Attorney, Management Team, Board of Directors, Landlords.
Results: Partners exited practice with employment contracts with other healthcare providers/systems and significantly reduced contractual and governmental liabilities.
DEFENSE RE-MANUFACTURER
Industry: Manufacturing – Defense
Size: Single location, multi-million revenue, Tier 3 Defense Contractor.
Value: Advised owners during their negotiations with an out-of-state competitor that pursued acquiring the business. Provided decision support to owners regarding business value, sale process, financial performance and banking relations.
Actions: Analyzed risks and options involved with the decision to sell the business. Provided decision support to Owners on banking, asset purchase agreement review, deal points, critical milestones and contingency strategies.
Interfaces: Operating Partner, CPA, Attorney, Management Team, Board of Directors.
Results: One partner retired. Two partners remained to work in the business. Acquirer exited transaction due to inability to execute the transaction financing. Company is profitable.